March 4 (Bloomberg) -- A measure of U.S. corporate credit
risk approached a two-month low as comments by Russian President
Vladimir Putin signaled the crisis in Ukraine won’t immediately
escalate. Viacom Inc. is planning a $1.5 billion bond sale.

The Markit CDX North American Investment Grade Index, a
credit-default swaps benchmark used to hedge against losses or
to speculate on creditworthiness, declined 2.7 basis points to
62.6 basis points as of 4:52 p.m. in New York, according to
prices compiled by Bloomberg. The gauge was poised to close at
the lowest level this year.

Investors pushed the index lower after Putin, in his first
public remarks since Ukraine said its Crimean peninsula had been
taken over by Russian forces, said he reserved the right to use
force to defend ethnic Russians while there’s “no such
necessity” at present.

“The geopolitical situation seems a little less heady
today, which is flowing into credit,” Jody Lurie, a corporate-credit analyst at Janney Montgomery Scott LLC in Philadelphia,
said in a telephone interview. Investors “are calmer than they
were yesterday.”

The swaps gauge typically falls as investor confidence
improves and rises as it deteriorates. The contracts pay the
buyer face value if a borrower fails to meet its obligations,
less the value of the defaulted debt. A basis point equals
$1,000 annually on a contract protecting $10 million of debt.

Viacom, Burlington

Viacom, the media company controlled by billionaire Sumner
Redstone, intends to issue $400 million of five-year notes to
yield 67 basis points more than similar-maturity Treasuries,
$550 million of 10-year debt to yield 127 basis points more than
benchmarks and $550 million of securities maturing in 30 years
with a relative yield of 162 basis points, according to a person
with knowledge of the transaction.

The new securities may be rated Baa2 by Moody’s Investors
Service, said the person, who asked not to be identified citing
lack of authorization to speak publicly. Viacom last issued
bonds in August.

The owner of MTV and Nickelodeon cable channels will redeem
its $600 million of 4.375 percent notes maturing in September on
April 3, the company said in a statement.

Burlington Northern Santa Fe LLC, which Warren Buffett’s
Berkshire Hathaway Inc. acquired in 2010, sold $500 million of
3.75 percent, 10-year notes to yield 110 basis points more than
benchmarks and $1 billion of 4.9 percent, 30-year debentures
with a relative yield of 128 basis points, according to data
compiled by Bloomberg.

Proceeds may be used to repay debt and for general
corporate purposes, Bloomberg data show.

RadioShack Bonds

RadioShack Corp.’s $324.8 million of 6.75 percent bonds due
May 2019 declined 11 cents to 55 cents on the dollar, the lowest
level since the notes were issued in 2011, before trading at
56.3 cents as of 12:39 p.m. in New York, according to Trace, the
bond-price reporting system of the Financial Industry Regulatory
Authority.

The electronics chain that posted its eighth straight
quarterly loss reported revenue of $935.4 million, below the
$1.12 billion average estimate of 13 analysts surveyed by
Bloomberg, and said it would close as many as 1,100 locations.

The risk premium on the Markit CDX North American High
Yield Index, tied to the debt of 100 speculative-grade
companies, narrowed 12.2 basis points to 311.2, Bloomberg prices
show. Speculative-grade bonds are rated below Baa3 by Moody’s
and less than BBB- at Standard & Poor’s. A basis point is 0.01
percentage point.

The extra yield investors demand to hold investment-grade
corporate bonds rather than government debt declined 0.6 basis
point to 96.5, Bloomberg data show.